For many entities, transaction accounts that enable the associated entity to purchase an item first, and then pay for the item later on in the future can be beneficial. For example, small businesses may find such payment schemes very useful, such as a retailer purchasing an item wholesale and selling the item at a mark-up to a consumer, where they can receive the payment from the consumer for the marked-up amount prior to actually owing the purchase amount for the item.
Another payment scheme for delayed payment of an item is the use of installments. In such systems, when purchasing an item from a merchant, the purchaser can choose to pay for the item via a series of installment payments over a period of time, rather than pay for the item outright. Such installment payments often total to an amount greater than the initial purchase price, due to interest, as an incentive to the merchant, while still enabling the purchase to receive the item immediately and pay for it slowly over time.
However, many merchants may be unable to offer installment payments as an option, particularly in a large number of countries where financial payment systems lack the hardware and programming to accommodate such transactions. Thus, an entity, such as a small business or an individual consumer, may be unable to use installments in many instances, and may instead have to take advantage of other delayed payment schemes. However, many of these methods provide for delayed payment of periods as low as thirty or sixty days.
Thus, there is a need for a technical solution to enable an entity, such as a small business or consumer, to make a series of delayed payments for an electronic payment transaction, without the need to rely on merchants and acquiring financial institutions that often lack the hardware infrastructure and programming necessary to process such transactions. As every transaction for a transaction account for an entity involves a single issuing financial institution, technological improvements to systems associated with an issuing financial institution, as discussed herein, may enable entities to purchase products and have immediate access, and yet make delayed payments for the particular purchase over a long-term period of time.